Correlation Between Eaton Vance and Putnam Managed
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Putnam Managed at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eaton Vance and Putnam Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Putnam Managed Municipal, you can compare the effects of market volatilities on Eaton Vance and Putnam Managed and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eaton Vance with a short position of Putnam Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Putnam Managed.
Diversification Opportunities for Eaton Vance and Putnam Managed
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Putnam is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Putnam Managed Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Managed Municipal and Eaton Vance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eaton Vance National are associated (or correlated) with Putnam Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Managed Municipal has no effect on the direction of Eaton Vance i.e., Eaton Vance and Putnam Managed go up and down completely randomly.
Pair Corralation between Eaton Vance and Putnam Managed
Considering the 90-day investment horizon Eaton Vance National is expected to generate 0.87 times more return on investment than Putnam Managed. However, Eaton Vance National is 1.15 times less risky than Putnam Managed. It trades about 0.02 of its potential returns per unit of risk. Putnam Managed Municipal is currently generating about 0.0 per unit of risk. If you would invest 1,616 in Eaton Vance National on August 27, 2024 and sell it today you would earn a total of 89.00 from holding Eaton Vance National or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Putnam Managed Municipal
Performance |
| Timeline |
| Eaton Vance National |
| Putnam Managed Municipal |
Eaton Vance and Putnam Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Putnam Managed
The main advantage of trading using opposite Eaton Vance and Putnam Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Putnam Managed can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Putnam Managed will offset losses from the drop in Putnam Managed's long position.| Eaton Vance vs. PowerUp Acquisition Corp | Eaton Vance vs. Aurora Innovation | Eaton Vance vs. HUMANA INC | Eaton Vance vs. Aquagold International |
| Putnam Managed vs. MFS Investment Grade | Putnam Managed vs. Eaton Vance National | Putnam Managed vs. Blackrock Munivest | Putnam Managed vs. DTF Tax Free |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |